Ask Brad: The Absurdity of Annual Compensation Plan Changes

This is the latest installment of a regular column to answer questions from advisors who are considering transitioning to an RIA model. To see Brad’s previous articles, click here. To submit your question, please email Brad here.

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Imagine you’re a standout college athlete. You’re projected to be chosen high in the draft.

You get picked by a team, and they give you a big signing bonus.

The cash hits your bank account. You’re pumped. You feel good.

Then the contract terms hit you.

You must stay with the team at least 10 years.

Throughout those 10 years, the team can change the coaching staff as often as they want.

They can change the team facilities.

They can change what equipment you can use.

They can change what position you play.